Fortis Residences offers unmatched value in Makati’s upscale condo scene

October 11, 2024 | 3:55 pm

DMCI_Homes_BusinessWorld_Fortis_Residences_Leisure_Pool-OL — Leisure Pool (Artist’s Illustration)

As the Philippines’ premier business district, Makati City is known for its upscale residential condominiums, but most developments come with a trade-off between value and comfort.

Fortis Residences by DMCI Homes Exclusive on Chino Roces Avenue stands out by offering more value at an impressive price point.

Designed for those with a discerning taste, Fortis Residences offers a refined living experience with its generous living spaces and top-tier amenities that balance modern sophistication with the utmost convenience of city living.

Redefining Space and Comfort

While most developments in the area are known for their limited unit sizes and amenities, the 7,200-square meter development offers units options ranging from 55.5 sq.m. to 154 sq.m., giving residents the luxury of space rarely found in the city’s upscale condo market.

Upgraded 2-bedroom viewing unit (Actual Photo)

These units are not only spacious but are also designed with premium features to ensure the utmost comfort and style. Fortis Residences boasts large picture windows, built-in closets, digital door locks, and top-quality furnishings upon turnover. Split-type air-conditioning units, range hood, water heater for both the toilet and bath and sink, and fast Wi-Fi connection are available upon moving in, making life more convenient for incoming residents.

This emphasis on space and thoughtful design makes Fortis Residences an attractive option for those seeking more than just a place to live — it’s a home that complements a refined way of life.

Resort-Inspired Amenities at Your Doorstep

Developed by the Philippines’ leader in resort-style developments, Fortis Residences offers more than just spacious interiors — it provides a genuine resort-inspired lifestyle with its wide range of amenities.

Unlike most Makati condos with limited facilities, Fortis Residences provides homeowners with three swimming pools, including a Sky Deck pool where residents can swim while enjoying panoramic views of the city.

For those who value outdoor spaces, Fortis Residences boasts beautiful gardens and open areas that provide a tranquil escape from the urban hustle. Residents can also unwind in the Sky Lounge, which offers a stylish space to relax or socialize. For the more active, the basketball court and various lounge areas provide venues for both exercise and community interaction.

Expansive Ground Floor

The wide-open ground floor is another standout feature.

Unlike the typical enclosed lobbies of most upscale condominiums in Makati, Fortis Residences offers an open, welcoming space that adds to the feeling of freedom and connection with nature.

This design also enhances the living experience, making it possible for residents to enjoy both privacy and a sense of community within the building.

Strategic, High-Growth Location

Location is key, and Fortis Residences benefits from being part of the Makati Southwest Gateway — an up-and-coming commercial strip along Chino Roces Avenue. The redevelopment of this strip, as planned by the Makati City Government, provides space for new commercial establishments and residential developments to rise within the city.

This prime location also places residents near major business districts like the Makati CBD and Bonifacio Global City (BGC), while also providing easy access to EDSA, Skyway Stage 3, and the South Luzon Expressway for seamless travel around Metro Manila and beyond. The proximity to airports, malls, restaurants, schools, and hospitals further adds to the convenience of living at Fortis Residences.

What makes Fortis Residences even more compelling is its exceptional value in the upscale Makati condo market. With larger unit sizes, premium features, and a wide range of resort-inspired amenities, it offers more for your investment compared to other properties in the area. The development’s strategic location in a fast-growing commercial hub only enhances its potential for long-term value appreciation.

A Unique Blend of Comfort and Style

Fortis Residences combines elegance, space, and convenience in a way that few other Makati condos can. Its spacious units and generous amenities offer a rare blend of upscale living and comfort, making it a standout choice for those seeking more than just a home in the Philippines’ Financial Capital.

For individuals or families looking for a place that accommodates both work and leisure, Fortis Residences presents a unique opportunity to invest in a property that delivers exceptional value, comfort, and a prestigious address in Makati’s fast evolving landscape.

With its focus on space, premium features, and resort-inspired amenities, Fortis Residences is redefining what it means to live in an upscale Makati condo. Unit turnover starts in December 2027.

Underpinned by exceptional quality that DMCI Homes has long been known for, each DMCI Homes Exclusive property is designed to possess an inherent rarity, be it in location, master plan or development features. To learn more about DMCI Homes Exclusive, visit www.dmcihomes.com or call (632) 5324-8888. News and other updates are also posted on the company’s official social media accounts on Facebook, Twitter, Instagram, and YouTube.

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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Israeli strikes kill 22 in Beirut as Hezbollah official evades assassination

October 11, 2024 | 2:52 pm

ISRAEL-PALESTINIANS-LEBANON — SMOKE rises over Beirut’s southern suburbs after a strike, amid ongoing hostilities between Hezbollah and Israeli forces, as seen from Sin El Fil, Lebanon, Oct. 1, 2024. — REUTERS

BEIRUT/JERUSALEM – Israeli strikes killed 22 people and injured more than 100 in central Beirut on Thursday, Lebanese authorities said, as a senior Hezbollah official evaded an Israeli assassination attempt in the city, according to three security sources.

In Lebanon’s south, two United Nations peacekeepers were injured when an Israeli tank fired at a watchtower at the force’s main headquarters in Naqoura, prompting the U.N. to say its personnel were facing increasing danger.

The conflict between Israel and Hezbollah erupted one year ago when the Iranian-backed group opened fire in support of Palestinian militant group Hamas at the start of the Gaza war.

It has intensified dramatically in recent weeks, with Israel bombing Beirut’s southern suburbs, the south and the Bekaa Valley, and killing many of Hezbollah’s top leaders.

Wafiq Safa, who heads Hezbollah’s liaison and coordination unit responsible for working with Lebanese security agencies, was targeted by Israel on Thursday night but survived, the security sources said.

The Israeli strikes hit a densely packed residential neighborhood of apartment buildings and small shops in the heart of Beirut.

“I was praying. We heard the first strike and I thought it was in my house. The second one was much more powerful than the first one,” said Ala’a Baydoun, a resident whose house was damaged. “I went to see where the strike was and I saw that in my house, the glass and windows had shattered. We came and saw this scene. It was a horrifying scene, it was something unbelievable.”

Israel did not issue evacuation warnings ahead of the strikes and had not previously attacked the area, which is removed from Beirut’s southern suburbs where Hezbollah’s headquarters have been repeatedly bombed by Israel.

Lebanon’s Health Ministry reported 22 people killed and 117 wounded. Among the dead was a family of eight, including three children, who had evacuated from the south, according to a security source.

Israeli strikes have killed at least 2,169 people in Lebanon over the last year, the Lebanese government said in its daily update. The majority have been killed since Sept. 23, when Israel expanded its military campaign. The toll does not distinguish between civilians and combatants.

The attempt to kill Safa, whose role merges security and political affairs, marked a widening of Israel’s targets among Hezbollah officials, which previously focused on the group’s military commanders and top leaders.

There was no immediate comment on the incident by Israel or by Hezbollah.

Lebanese authorities and Hezbollah have both endorsed a ceasefire as a means to end the conflict, but diplomats fear that diplomacy has taken a back seat to military operations.

Lebanon’s acting U.N. Ambassador Hadi Hachem told the council that “only diplomatic solutions and the implementation of international resolutions, the commitment to international law and international humanitarian law is the means to end this war and this aggression.”

PEACEKEEPERS ‘IN JEOPARDY’

Israel did say it had killed Muhammad Abdullah, the head of the Islamic Jihad’s network in the Palestinian refugee camp of Nur Shams in the West Bank. The Palestinian health ministry said on Friday that two people were killed in an Israeli strike on Nur Shams.

Abdullah, who Israel said had been involved in a number of attacks against its soldiers, was killed along with another “terrorist” in a strike near Tulkarm, the military and security agency said in a statement on Friday.

The United Nations’ peacekeeping force in Lebanon, UNIFIL, said two of its personnel were injured when an Israeli tank fired at a watchtower on Thursday at its main headquarters in Naqoura, hitting the tower and causing the peacekeepers to fall.

The two peacekeepers were from Indonesia’s contingent and were in good condition after being treated for light injuries, Indonesia Foreign Minister Retno Marsudi said in a statement.

The safety of more than 10,400 U.N. peacekeepers in Lebanon is “increasingly in jeopardy” and operations have virtually halted since late September, U.N. peacekeeping chief Jean-Pierre Lacroix told the Security Council. That coincides with Israel’s escalation of its conflict with Lebanon.

UNIFIL called attacks on peacekeepers “a grave violation of international humanitarian law.”

The White House said the U.S. was deeply concerned by reports that Israeli forces fired on U.N. positions and was pressing Israel for details.

Israel’s military said in a statement its troops operated in the Naqoura area, “next to a UNIFIL base.”

“Accordingly, the IDF instructed the U.N. forces in the area to remain in protected spaces, following which the forces opened fire in the area,” Israel’s statement said, adding it maintains routine communication with UNIFIL.

The peacekeepers are determined to remain at their posts despite Israeli attacks and orders by Israel’s military to leave, the force’s spokesperson Andrea Tenenti said.

In New York, Israel’s U.N. Ambassador Danny Danon said Israel recommends UNIFIL relocate 5 km (3 miles) north “to avoid danger as fighting intensifies”.

Danon said attacking Hezbollah was necessary so 70,000 displaced Israelis could return to homes in northern Israel.

The Middle East remains on high alert for further escalation in the region, awaiting Israel’s response to an Iranian missile strike on Oct. 1.

U.S. vice president and Democratic presidential candidate Kamala Harris said de-escalation was needed.

“We have got to reach a ceasefire,” Harris told reporters as she departed Las Vegas, while commenting on the situations in Gaza and Lebanon. “We’ve got to de-escalate.”

A ceasefire remains elusive in Gaza and Lebanon. Washington’s occasional condemnation of Israel over civilian deaths has mostly been verbal with no substantive change in policy. – Reuters

Bangladesh likely to keep power deal with India’s Adani, sources say

October 11, 2024 | 2:45 pm

DHAKA/NEW DELHI – Bangladesh is likely to set aside pricing concerns and retain a power purchase pact with India’s Adani Power, in the face of supply worries and gloomy prospects for a legal challenge, two sources with direct knowledge of the matter said.

The new government has set up a panel to gauge whether its predecessor’s contracts adequately protected the nation’s interests, particularly projects faulted for lack of transparency that were initiated under a special expediting law.

One contract being scrutinized over price concerns is a 2017 deal to buy electricity for 25 years from Adani’s $2-billion, 1,600-MW power plant in India’s eastern state of Jharkhand that exclusively supplies Bangladesh.

The project meets nearly a tenth of Bangladesh’s demand for power, so cancelling the Adani deal outright would be difficult, however, said one of the sources. Both spoke on condition of anonymity as the matter is a sensitive one.

Also, a legal challenge in an international court was likely to fail without strong evidence of wrongdoing, the source added.

While an exit may not be possible, the only feasible option could be a mutual agreement to reduce the tariff, the second source said.

Asked for comment on the remarks, Muhammad Fouzul Kabir Khan, the power and energy adviser, or de facto minister in the interim government, said, “The committee is currently reviewing the matter, and it would be premature to comment.”

The Adani power costs Bangladesh about 12 taka ($0.1008) a unit, an official of the Bangladesh Power Development Board said, citing the latest audit report for financial year 2023/24.

That is 27% higher than the rate of India’s other private producers and as much as 63% more than Indian state-owned plants, he added.

Under the deal, Bangladesh has been sourcing electricity since April 2023 from Adani, along with about 1,160 MW from other Indian plants.

Adani has had “no indication” that Bangladesh is reviewing the agreement, a spokesperson in India said.

“We continue to supply power to Bangladesh despite mounting dues, which are of significant concern and are rendering plant operations unsustainable,” the spokesperson said.

Dhaka is struggling to clear dues of $800 million to Adani Power, among more than $1 billion owed to Indian power companies, because of difficulty in accessing dollars to make payment.

“We are in constant dialogue with senior officials of the Bangladesh Power Development Board and the government, who have assured us our dues will be cleared soon,” the Adani spokesperson added.

Adani Power was confident Dhaka would fulfil its commitments, just as the company had met its contract terms, the spokesperson added, but did not respond to a query on why its rates exceeded those of other suppliers.

Nevertheless, domestic critics, such as the Bangladesh Nationalist Party (BNP) of former premier Khaleda Zia, say pricing concerns make a review of the deal necessary.

“The deal with Adani has raised serious concerns about overpricing from the start, and it’s a positive step that the government is now reviewing it,” said senior party leader Zainul Abdin Farroque.

“I hope they make the right decision.”

The interim government led by Nobel laureate Muhammad Yunus took power in Bangladesh in August after deadly protests prompted then Prime Minister Sheikh Hasina to resign and flee to neighboring India. – Reuters

ByteDance’s TikTok cuts hundreds of jobs in shift towards AI content moderation

October 11, 2024 | 2:36 pm

KUALA LUMPUR – Social media platform TikTok is laying off hundreds of employees from its global workforce, including a large number of staff in Malaysia, the company said on Friday, as it shifts focus towards a greater use of AI in content moderation.

Two sources familiar with the matter earlier told Reuters that more than 700 jobs were slashed in Malaysia. TikTok, owned by China’s ByteDance, later clarified that less than 500 employees in the country were affected.

The employees, most of whom were involved in the firm’s content moderation operations, were informed of their dismissal by email late Wednesday, the sources said, requesting anonymity as they were not authorized to speak to media.

In response to Reuters’ queries, TikTok confirmed the layoffs and said that several hundred employees were expected to be impacted globally as part of a wider plan to improve its moderation operations.

TikTok employs a mix of automated detection and human moderators to review content posted on the site.

ByteDance has over 110,000 employees in more than 200 cities globally, according to the company website.

The technology firm is also planning more retrenchments next month as it looks to consolidate some of its regional operations, one of the sources said.

“We’re making these changes as part of our ongoing efforts to further strengthen our global operating model for content moderation,” a TikTok spokesperson said in a statement.

The company expects to invest $2 billion globally in trust and safety this year and will continue to improve efficiency, with 80% of guidelines-violating content now removed by automated technologies, the spokesperson said.

The layoffs were first reported by business portal The Malaysian Reserve on Thursday.

The job cuts occur as global technology firms face greater regulatory pressure in Malaysia, where the government has asked social media operators to apply for an operating license by January as part of an effort to combat cyber offences.

Malaysia reported a sharp increase in harmful social media content earlier this year and urged firms, including TikTok, to step up monitoring on their platforms. – Reuters

Tesla CEO Musk unveils ‘Cybercab’ robotaxi as focus shifts to automation

October 11, 2024 | 2:33 pm

Elon Musk showcased a robotaxi with two gull-wing doors and no steering wheel or pedals at a splashy event on Thursday and added a robovan to the roster as Tesla’s goal shifts from low-priced mass-market automaker to robotics manufacturer.

Musk reached the stage in a “Cybercab” which he said will go into production in 2026 and be priced less than $30,000. He said operation will cost 20 cents a mile over time and charging will be inductive, requiring no plugs.

He said the cars rely on artificial intelligence and cameras and do not need other hardware such as what robotaxi rivals use – an approach investors and analysts have flagged as challenging both from a technical and regulatory stand point.

“The autonomous future is here,” Mr. Musk said. “We have 50 fully autonomous cars here tonight. You’ll see model Ys and the Cybercab. All driverless.”

Mr. Musk also showcased a larger, self-driving vehicle – called Robovan – capable of carrying up to 20 people, and showed off Tesla’s Optimus humanoid robot.

Mr. Musk’s plan is to operate a fleet of self-driving Tesla taxis that passengers can hail through an app. Individual Tesla owners will also be able to make money on the app by listing their vehicles as robotaxis.

Thursday’s event at the Warner Bros studio near Los Angeles, California, is titled “We, Robot” – an apparent nod to the “I, Robot” science-fiction short stories by American writer Isaac Asimov, but also echoes Mr. Musk’s insistence that Tesla “should be thought of as an AI robotics company” rather than an automaker.

Those attending included investors, stock analysts and Tesla fans.

Investors expecting concrete details on how quickly Tesla can ramp up robotaxi production, secure regulatory approval and implement a strong business plan to leapfrog rivals such as Alphabet’s GOOGL.O Waymo were left disappointed.

“Everything looks cool, but not much in terms of time lines, I’m a shareholder and pretty disappointed. I think the market wanted more definitive time lines,” said Dennis Dick, equity trader at Triple D Trading. “I don’t think he said much about anything… He didn’t give much info.”

Mr. Musk said he tends to be optimistic with time frames.

MISSED PROMISES

Mr. Musk said in 2019 he was “very confident” the company would have operational robotaxis by the next year. After missed promises, Musk this year diverted his focus to developing the vehicles after scrapping plans to build a smaller, cheaper car widely seen as essential to countering slowing EV demand.

Tesla is at risk of posting its first-ever decline in deliveries this year as buying incentives have failed to attract enough customers to its aging EV lineup. Steep price cuts meant to offset high interest rates have also squeezed profit margins.

Complicated technology and tight regulation have led to billion of dollars in loss for other companies attempting to crack the robotaxi market, forcing some to shut shop.

Some are still pushing, including General Motors’ Cruise, Amazon’s Zoox and Chinese firms such as WeRide.

Unlike expensive hardware such as lidar that others use, Musk is relying only on cameras and AI to run FSD to keep costs down. But FSD, which requires constant driver attention, has faced regulatory and legal scrutiny with at least two fatal accidents involving the technology.

“We do expect to start fully autonomous unsupervised FSD in Texas and California next year,” Mr. Musk said. “That’s with the Model 3 and Model Y.”

He did not say if the robotaxis will use any new technology or depend on FSD. – Reuters

Harris says Biden ‘courageous’ for choosing to step aside

October 11, 2024 | 2:31 pm

LAS VEGAS – US Vice President Kamala Harris said on Thursday that Joe Biden’s decision to drop out of the 2024 election race this summer was “one of the most courageous” any president has made.

“President Biden made a decision that I think history will show was probably one of the most courageous that a president could make, which is he decided to put country above his personal interest,” Ms. Harris said during the Las Vegas event sponsored by Univision, a Spanish-language television network, according to press pool reporters. Her remarks were dubbed into Spanish on television.

“I believe that the stakes right now are extraordinarily high, and potentially, some might say, historians have said unprecedented.”

The Democratic presidential nominee made the remarks when pressed by a voter who said he was leaning towards Trump and expressed concern about how Biden exited the race. The voter said he wanted clarity on why Harris became the nominee without going through a competitive primary.

Mr. Biden ended his re-election bid on July 21, after facing weeks of pressure from prominent Democratic elected officials and donors concerned about his age and fitness. Mr. Biden immediately endorsed Ms. Harris, who locked down the support of enough Democratic delegates to secure the party’s nomination.

Ms. Harris said in an interview on ABC News’ “The View” on Tuesday that there is “not a thing” she would have done differently from Biden as president. The remark was seized upon by Donald Trump’s campaign, which wants voters to see the Republican ex-president as the 2024 candidate of change.

Ms. Harris said Mr. Biden, who is not making regular campaign appearances on her behalf, has been a key partner and supporter and that his decision to leave the race marked a sharp contrast with Mr. Trump, who never conceded his 2020 election loss.

“We are literally having a choice as the American people about choosing a path either that is about rule of law, democracy or something that is about admiring dictators,” she said, according to the pool reporters.

The Trump campaign did not immediately respond to a request for comment. – Reuters

Philippine bonds seen getting tailwind from falling rice prices

October 11, 2024 | 1:30 pm

Rice Terraces in The Philippines as President Marcos Wants Philippines' Rice Output Raised — BLOOMBERG

Philippine sovereign bonds are seen extending gains as falling rice prices cool inflation and back the case for more interest-rate cuts.

Inflation in the country slowed to a four-year low in September before India eased restrictions on rice exports. HSBC Holdings Plc expects the Philippines to benefit the most from India’s move as rice accounts for 9% of its consumer price inflation basket.

“India’s decision to ease curbs on its rice exports is an unexpected boon to Philippine policymakers,” said Eugenia Victorino, head of Asia strategy at Skandinaviska Enskilda Banken in Singapore. “It opens the space for Bangko Sentral ng Pilipinas to start an aggressive easing path, which would further put downward pressure on bond yields.”

Philippine peso bonds have handed investors a return of more than 6% so far this year, the highest in Asia after India. Gains have been supported by the BSP kicking off its easing cycle in August with a quarter percentage point rate cut, which was followed up with a 250-basis-point reduction in banks’ reserve requirement that takes effect on Oct. 25.

“Some of this excess liquidity will be funneled into buying Philippines government bonds, driving yields lower,” said Peerampa Janjumratsang, portfolio manager for Asia fixed income at M&G Investments in Singapore. “While the medium-term outlook points to lower yields, there may be short-term volatility, influenced by both local and US economic data.”

BSP Governor Eli Remolona said last week a 25 basis-point cut is on the cards for the Oct. 16 policy meeting, followed by a reduction of the same size in December. However, some central bank watchers aren’t ruling out a larger cut next week after Finance Secretary Ralph Recto, who represents the government in the central bank’s rate-setting board, backed a half-point cut in October to match the Federal Reserve.

Inflation coming in lower than the central bank’s 2% to 4% target could justify even more aggressive rate cuts, said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp. in Manila. He sees at least 25 basis points of easing next week, with the possibility of a 50-basis-point reduction.

That could push yields on 10-year notes down to 5.5% in the next six months, , Ricafort said, from about 5.74% on Wednesday. — Bloomberg

Skechers crowns Pia Wurtzbach as brand ambassador

October 11, 2024 | 11:59 am

The Company has chosen the beauty queen to promote Skechers Hands Free Slip-ins and the brand’s winning comfort technologies

Pia Wurtzbach is stepping into the spotlight in total comfort thanks to Skechers. The global lifestyle and performance brand known for its trending styles and coveted innovations has announced that Ms. Wurtzbach has joined The Comfort Technology Company® as the first ambassador for the Philippines. The beauty queen, model, actress and fitness enthusiast will promote Skechers’ diverse range of footwear, including styles featuring its popular Skechers Hands Free Slip-ins technology.

“Skechers is the brand I’m sure of when it comes to commitment to comfort without compromising style,” began Pia Wurtzbach. “With the profession I’m in, it’s important for me to have footwear I can rely on, and a brand that has everything I need for the types of activities that I do. Whether it’s a busy day at Fashion Week or a morning on my quiet days running at the park, I always find myself reaching for the right Skechers pair. I’m deeply honored and thrilled to join the Skechers team, and I can’t wait to share my journey with them.”

“Skechers has placed particular importance and investment in the Philippines, and as we continue to build our business in the market, we felt the time was right to have a Filipino that embodies both the country and the brand’s culture. We found just that with Pia Wurtzbach,” said Suzette Pasustento, country manager of Skechers Philippines. “Pia’s influence across many areas along with her dedication to an active lifestyle aligns with our brand’s diverse ethos. We look forward to working with Pia to inspire others to take that first step with Skechers and realize their full potential.”

An elegant modern-day fashion icon, Ms. Wurtzbach has amassed a strong fan base locally and internationally and shines through with her impressive accomplishments. A finisher of the 2022 New York City Marathon and a regular at global fashion weeks, she embodies the perfect blend of style and fitness. The ambassadorship is an ideal match, with Ms. Wurtzbach’s effortlessly chic personality paired with Skechers’ popular designs that cater to both trend-savvy individuals and active enthusiasts alike.

Ms. Wurtzbach joins a team of global Skechers ambassadors — from music icon Snoop Dogg, lifestyle legend Martha Stewart, America’s Got Talent host Howie Mandel, and TV and fitness personalities Amanda Kloots and Brooke Burke to former professional athletes such as Sugar Ray Leonard. The roster of elite pros around the world competing in Skechers footwear includes basketball players Julius Randle and Terance Mann, both of whom recently toured the Philippines, as well as Joel Embiid and Rickea Jackson; golfers Matt Fitzpatrick and Brooke Henderson; soccer players Harry Kane, Mohammed Kudus and Oleksandr Zinchenko; baseball players Clayton Kershaw, Aaron Nola, Chris Taylor and Brendan Donovan; and pickleball pros Tyson McGuffin and Catherine Parenteau.

Skechers offers its complete range of footwear at Skechers retail stores, as well as at department stores and footwear retailers around the globe.

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CoA shares experience in Gender and Development Funds Audit with Cambodian Delegation

October 11, 2024 | 11:20 am

COA-OL — Commission on Audit (CoA) Chairperson Gamaliel A. Cordoba (center) with the delegation from the Royal Government of Cambodia, led by HE Dr. Ing Kantha Phavi, Minister of the Ministry of Women’s Affairs of Cambodia, who visited the CoA to gain insights on auditing GAD Funds

The Commission on Audit (CoA) shared its experiences in the audit of Gender and Development (GAD) Funds with a high-level delegation from the Royal Government of Cambodia as part of a comprehensive study visit focusing on Gender-Responsive Budgeting (GRB) and women’s leadership initiatives on Oct. 8, 2024 at the CoA Central Office in Quezon City.

The study visit was organized by the United Nations Development Programme with the objective of enhancing the capacity of Cambodian policy makers and technical practitioners in promoting gender-responsive budgeting and women’s leadership. The study visit gave valuable insights into the Philippines’ national experience in implementing GRB which has become a key tool for promoting gender equality through public finance.

CoA Chairperson Gamaliel A. Cordoba welcomed around 32 delegates from Cambodia led by Her Excellency Dr. Ing Kantha Phavi, Minister of the Ministry of Women’s Affairs of Cambodia.

Chairperson Cordoba noted that the visit marks an important step toward strengthening regional partnerships aimed at advancing gender equality and inclusive governance across the Asian region. He underscored the significance of the discussions to provide practical insights that could benefit Cambodia’s GRB initiatives. “Your site visits to various government agencies showcase how GRB is applied in the Philippine context, offering valuable examples of best practices.”

For her part, Minister Phavi thanked the CoA for the opportunity to understand important aspects of GRB implementation in the Philippines, including capacity development requirements, gender auditing, and GRB tools for sectoral use.

Resource persons from the Commission’s Gender and Development Focal Point System Technical Working Group, chaired by Assistant Commissioner Fortunata M. Rubico, discussed how the CoA audits gender-responsive budgets to ensure accountability in gender budgeting. The CoA has been known in the international audit community as a pioneer in the audit of GAD Funds and has continuously enhanced the conduct of audit by prescribing and updating audit guidelines and promoting both capacity and capability-building of its personnel in the audit of GAD.

Aside from the CoA, the Cambodia delegation also visited the Philippine Commission on Women, the Department of Budget and Management and the Department of the Interior and Local Government.

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Trade gap widens to $4.38B in August

October 11, 2024 | 12:34 am

port-container van — MARIAH DALUSONG-UNSPLASH

By Beatriz Marie D. Cruz, Reporter

THE PHILIPPINES’ trade gap widened year on year in August as growth in imports still outpaced the increase in exports, even as the value of outbound shipments was the highest in 11 months, the government reported on Thursday.

Preliminary data from the Philippine Statistics Authority showed that the country’s trade-in-goods balance — the difference between exports and imports — stood at a $4.375-billion deficit in August, 6.6% bigger than the $4.105-billion gap in the same month last year.

However, month on month, the trade gap shrank by 10.25% from the $4.88-billion deficit posted in July.

Year to date, the trade deficit narrowed by 4.35% to $34.3 billion from the $35.86-billion gap a year ago.

The country’s balance of trade in goods has been in a deficit for 111 straight months (over nine years) or since the $64.95-million surplus recorded in May 2015.

Total external trade in goods amounted to $17.87 billion in August, up 1.8% year on year. Of the total, 62.2% was imported goods, while the remaining 37.8% was made up of exports.

In August, export sales inched up by 0.3% to $6.75 billion from $6.73 billion in the same month in 2023, logging a second straight month of increase.

This was the biggest export value in 11 months or since the $6.77 billion in September last year.

Month on month, exports increased by 7.97%.

In the first eight months of the year, exports grew by an annual 2.27% to $49.41 billion.

Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said in an e-mail that the rebound in exports seen since July “has been driven primarily by a comeback in demand from nontraditional markets and, to a smaller extent, recovering shipments to both the US and Japan.”

“By contrast, exports to China and Hong Kong have remained essentially flat in comparison.”

Meanwhile, the value of imported goods rose by 2.7% to $11.12 billion in August from $10.83 billion a year prior. Month on month, imports inched down by 0.02%.

Year to date, imports declined by an annual 0.55% to $83.7 billion.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the year-on-year increase in August imports to the peso’s appreciation versus the dollar.

“The faster growth in imports compared to exports may be partly attributed to the stronger peso exchange rate that made imports cheaper from the point of view of the locals, thereby increasing demand,” he said in a Viber message.

The stronger peso also made Philippine exports more expensive for international buyers, thus leading to a wider deficit, Mr. Ricafort added.

The peso closed at P56.111 versus the dollar at end-August, stronger by P2.254 from its P58.365 finish the previous month.

The Development Budget Coordination Committee (DBCC) projects 3% and 4% growth in exports and imports, respectively, this year.

KEY EXPORTS DECLINE
Manufactured goods, which accounted for 81.2% of the country’s export receipts, slipped by 0.6% to $5.48 billion in August from $5.51 billion a year ago.

Electronic products, which made up most of manufactured exports, declined by 8.2% year on year to $3.57 billion in August.

Semiconductor exports likewise dropped by 13.8% to $2.69 billion in August. Exports of mineral products slumped by 13.4% to $582.36 million.

The United States remained the top destination of Philippine-made goods in August with an export value of $1.22 billion, accounting for 18.1% of the total.

This was followed by Hong Kong with $942.56 million (14% of the total), Japan ($935.33 million or 13.9%), China ($849.38 million or 12.6%) and South Korea ($332.64 million or 4.9%). Other top export markets include the Netherlands, Singapore, Taiwan, Germany, and Thailand.

IMPORTS
Meanwhile, imports of raw materials and intermediate goods grew by 5.2% year on year to $4.06 billion in August. This made up 36.5% of total imports.

Imported capital goods picked up by 9.6% annually to $3 billion, while imports of consumer goods was steady at $2.24 billion.

Imports of mineral fuels, lubricants and related materials slid by 9.1% to $1.79 billion in August.

“Real import demand is still wobbling, with purchases of consumer goods remaining stagnant, at best, while demand for imported capital goods remains depressed,” Mr. Chanco said.

China was the biggest source of imports valued at $2.79 billion, accounting for a quarter of the total import bill in August.

It was followed by Indonesia ($972.4 million or 8.7% of the total), South Korea ($925.36 million or 8.3%), Japan ($827.11 million or 7.4%) and the United States ($707.33 million or 6.4%).

FDI net inflows rise to five-month high in July

October 11, 2024 | 12:33 am

By Luisa Maria Jacinta C. Jocson, Reporter

NET INFLOWS of foreign direct investments (FDIs) into the Philippines rose by 5.5% year on year in July to hit a five-month high, the Bangko Sentral ng Pilipinas (BSP) said on Thursday.

Data from the central bank showed FDI net inflows increased to $820 million in July from $778 million in the same month a year ago.

This was the highest FDI inflow in five months or since the $1.366 billion recorded in February.

Month on month, net inflows of FDIs more than doubled from $394 million in June.

FDI inflows are a key source of jobs and capital for the economy.

“The improvement in FDI was driven by higher net inflows across all components,” the BSP said.

Nonresidents’ net investments in debt instruments of local affiliates went up by 2.7% to $610 million in July from $594 million a year ago.

Meanwhile, investments in equity and investment fund shares rose by 14.2% to $211 million from $184 million.

Broken down, foreigners’ net investments in equity capital other than reinvestment of earnings jumped by 16.8% year on year to $76 million from $65 million.

This came as equity capital placements surged by 65.8% to $135 million, while withdrawals more than tripled (262.7%) to $59 million.

The bulk of equity placements in July were mainly from Japan (73%), followed by the United States (13%) and Singapore (8%). These were invested mostly in the manufacturing and real estate industries.

For its part, reinvestment of earnings climbed by 12.8% to $135 million in July from $120 million a year prior.

SEVEN-MONTH FDI
For the first seven months, FDI net inflows rose by 7.5% to $5.256 billion from $4.888 billion in the same period in 2023.

BSP data showed that nonresidents’ investments in equity and investment fund shares jumped by 30.4% to $1.921 billion in the January-July period from $1.474 billion a year ago.

Net foreign investments in equity capital stood at $1.273 billion during the period, 58.3% higher than $804 million seen in the previous year.

Equity capital placements climbed by 58.5% to $1.592 billion, while withdrawals soared by 59.4% to $319 million.

Most of these placements were from the United Kingdom (48%), Japan (34%) and the United States (7%).

Meanwhile, reinvestment of earnings went down by 3.2% to $648 million from $670 million in the comparable year-ago period.

On the other hand, net foreign investments in debt instruments dropped by 2.3% to $3.335 billion in the first seven months from $3.414 billion a year prior.

The BSP expects to record FDI net inflows of $10 billion at end-2024.

“Improved economic conditions and positive growth prospects likely boosted investor confidence,” Jonathan L. Ravelas, senior adviser at professional service firm Reyes Tacandong & Co., said in a Viber message.

“Additionally, policy reforms aimed at creating a more business-friendly environment, such as easing regulations and offering tax incentives, played a significant role.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the higher FDI inflows were also driven by the country’s “attractive demographics and economic growth still among the fastest in Asia.”

The Philippine economy grew by 6.3% in the second quarter, the fastest in five quarters or since 6.4% in the first quarter of 2023.

“Investment commitments generated from overseas trips of the administration for more than a year already would help improve the FDI data going forward, if some of these investments are eventually realized,” he added.

The latest data from the Department of Trade and Industry showed that investment promotion agencies have approved P2.73-trillion worth of investment pledges in the first two years of the Marcos administration.

“Sectoral opportunities, particularly in high-growth areas like technology and renewable energy, attracted substantial investments. Lastly, strategic investments by companies looking to expand their global footprint and acquire new technologies contributed to the surge in inflows,” Mr. Ravelas added.

For the coming months, further benchmark rate cuts could help spur investments as these would lead to lower borrowing costs, he said.

The BSP kicked off its easing cycle in August with a 25-basis-point (bp) rate cut, bringing the policy rate to 6.25%.

BSP Governor Eli M. Remolona, Jr. has said the Monetary Board could slash benchmark interest rates by 50 bps more this year by delivering two more 25-bp cuts at its next two meetings scheduled for Oct. 16 and Dec. 19.

“The free trade agreement signed between the Philippines and South Korea earlier in September 2023 could further boost trade, investments from South Korea and from other countries, employment, and overall economic growth,” Mr. Ricafort added.

He added that the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill would also “attract more FDIs with enhanced investment incentives for locators” once signed into law.

The CREATE MORE bill, a priority measure of the administration, was ratified by Congress in September. The measure seeks to address investor concerns on the grant of fiscal and non-fiscal incentives to locators.

PHL among most exposed to shocks in advanced economies, AMRO says

October 11, 2024 | 12:32 am

makati-skyline-buildings — STOCK PHOTO | Image Dmitry Berdnyk from Unsplash

THE PHILIPPINES is among the countries that are most exposed to spillover effects from economic shocks and volatility in developed markets, the ASEAN+3 Macroeconomic Research Office (AMRO) said.

Increased interconnectedness among ASEAN+3 financial institutions, markets and economies highlights the potential for contagion as the region remains susceptible to shocks from global factors and developed economies, AMRO said in its ASEAN+3 Financial Stability Report 2024 released on Thursday.

“Global factors have significant spillover effects on ASEAN+3 financial systems. Japan and Korea, and the regional financial centers (Hong Kong and Singapore), Malaysia and the Philippines are most exposed to global factors such as the VIX (CBOE Volatility Index), macroeconomic risk, commodity prices, and the US dollar exchange rate,” it said.

“The financial markets of developed economies (North America, the UK, and Europe) have strong contagion effects on ASEAN+3, as indicated by the percentage of variation in ASEAN+3 stock market returns attributable to shocks in the stock market returns of these developed economies. All ASEAN+3 economies have significant links to financial systems in developed economies, with equity returns in Hong Kong, Japan, Korea, Malaysia, the Philippines, and Singapore being particularly sensitive to shocks from developed markets.”

Developed economies’ impact on ASEAN+3 is stronger compared with the “moderate” spillover effects from emerging market economies outside the region, such as those in Latin America and the Middle East, it said.

Meanwhile, the Philippines has the least exposure to intraregional financial spillovers, AMRO said.

“The Philippines is a very different economy from the other ASEAN (Association of Southeast Asia Nations) countries in the sense that it is a very service-driven economy, but it has been very resilient in the last few years after the big shock in 2020,” AMRO Chief Economist Hoe Ee Khor said in a virtual briefing, referring to the coronavirus pandemic.

Mr. Khor said the Philippines should maximize potential investments in renewables, business process outsourcing, and tourism to boost the economy’s resilience to external shocks.

“But to do that, they need to develop the infrastructure… [It is] one of the weaknesses of the economy. The policy makers are aware of that, and they have a very ambitious infrastructure plan,” he added.

“And with that, I think the Philippine economy will grow quite rapidly.”

AMRO said the landscape in ASEAN+3 markets has evolved since end-2023 as risks associated with high inflation and interest rates have subsided but those related to geopolitical issues have worsened.

The start of the US Federal Reserve’s rate-cut cycle in September has led to easing monetary conditions globally, it said, but the conflict in the Middle East and the upcoming US presidential election continue to present risks for financial markets.

The region’s reliance on the US dollar also exposes it to risks of potential funding shortage and the transmission of shocks during periods of monetary tightening or geopolitical tensions, it added.

ASEAN+3 economies’ growing interconnectivity highlights the need to “take a holistic macroeconomic and financial view of the region to safeguard against systemic risks,” AMRO said.

“In the near term, authorities should stay alert to the risks of inflation resurgence, escalating geopolitical tensions, or a global growth slowdown, all of which could challenge the resilience of the ASEAN+3 financial system. Given the increased interconnectedness of financial systems, continuous monitoring of international spillovers is essential, along with strengthening ASEAN+3-centric surveillance and cooperation. This includes enhancing cross-border surveillance, data sharing, regional stress testing, home-host supervision, and liquidity support to manage and mitigate potential spillover risks effectively,” Mr. Khor said.

“To improve resilience against external shocks within the dollar-reliant environment, ASEAN+3 economies should reinforce their economic and financial fundamentals, strengthen surveillance frameworks for monitoring US dollar liquidity conditions, bolster macroprudential frameworks for banks and NBFIs (nonbank financial intermediaries), and provide financing support to member economies facing US dollar liquidity stresses. Additionally, reducing structural dependence on the US dollar in the medium to long term by encouraging the use of local currencies and establishing cross-currencies payment systems should be a priority,” he added.

The region should also monitor potential risks in the real estate sector, “as weakened demand and tighter financial conditions in several economies have severely impacted the financial health of property developers, leading to declining profitability, liquidity, and debt servicing capacity,” AMRO said.

“Though to a lesser extent than the Plus-3 economies (China, Korea, Hong Kong, Japan), ASEAN economies like Cambodia, Malaysia, the Philippines, Thailand, and Vietnam face similar issues with high unsold inventories and/or delayed projects,” it said.

Still, Mr. Khor said risks to financial stability in the region appear to have eased this year compared with the situation in 2023.

“The current climate of robust growth and disinflation presents regional policy makers an opportunity to reduce debt, rebuild policy space, and strengthen fiscal capacity to better manage potential shocks. Replenishing foreign exchange reserves during times of capital inflows can further enhance market confidence and provide a buffer against extreme market volatility,” he said.

“To tackle the near- to long-term risks and challenges to ASEAN+3’s financial stability, the region must come together as one and strive for resilience and stability,” Mr. Khor added. — Beatriz Marie D. Cruz

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